Providian Financial (PVN) reported a decline in net income for the second quarter compared to a year ago, as restructuring efforts continue. The company posted a net income of $153.9 million, or 53 cents a share. Last year's net income was $232.4 million, or 79 cents. Analysts polled by Thomson Financial/First Call had expected a loss of a penny a share, but their calculation excludes extraordinary items. Providian's net income includes several one-time gains and the company said these were not broken out of the 53-cent a share profit. Revenue came to $1.32 billion -- analysts were expecting $1.45 billion -- vs. last year's $1.73 billion. For the full year, Providian expects earnings to range from $180 million to $200 million, or 61 to 68 cents a share. Shares of San Francisco-based Providian soared 13 percent to $4.25 after hours.
I say-Although we are up to 4.45/share now we did not beat the analysts yet. When we beat their estimates this stock will soar. For now if you break it down the extraordinary items are a one time blip. I'm long 1620 shares at 7/share and feel I may not get that back till next year. But hey, I always said I was in it for the longggggggg haul. Sorry if Im a wet rag but I like the closure of several offices- surely that will improve the bottom line. Now let's get the BK bill signed!!!!!!!!!!!!!!!!!
I agree, you have to take into account the extraordinary items, and that does change the numbers quite a bit. But the earnings are still very, very good, and those items are important steps in their turnaround.
As for CBS Marketwatch, I think they're the lowest of business journalism. I always find factual mistakes, or reporters not commenting on the obvious big issues. They give out assignments to very green reporters, and those guys pull a story out of the basics--comparing years and quarters--without having a clue as to the big story benind the stock.
you do not get all 15% as benefit. some will still go bk after the law and then the rest, don't just pay. most of them do not have a lot of money , outside a few deadbeat cheats , most have no money to pay the bills regardless of the law loss rate impact will be very small
You look like a short, you sound like a short and you smell like a short. You are a short.
So, cover your a$$ and get the hell out of this board.
Longs, do not sell cheap. Upgrades in the way.
This rally will continue for 3 days.
If you go through the math (they also mentioned this on the CC, so it's not just me making
If you go through the math ...''
I could not follow your math and I come up with a different result. From the press release-
''the net effect of changes to estimates of loan collectibility resulted in an increase to income of approximately $65.3 million during the second quarter....''
From the context this is a before tax figure.
''Income From Operations Before Taxes 148.6""
yields $83 million
appplying a 39.5% tax rate yields after tax core earnings of $50.2M
/294 M shs = $.17/sh
which just happens to annualize to PVNs esatimated earnigs for the year
read? Do you know what continuing operations means? If you do, good, if not call your broker. o.k., heres what pvn really earned for the second quarter from "continuing operations" PLUS ++++.31 O.K., That my friend BEATS THE ANALIST ESTIMATIONS, o.k., it's all good my friend, and at 2 bucks last week pvn was trading as if it was going bk, WELL I GUESS THEY AIN'T, now where should pvn be trading? I bet a lot higher than todays afterhours...btw, joes dog said we'll see strong buy UPGRADES TOMORROW........